BRRRR Partnership Calculator

[Corey Schneider]

Hi all - I'm looking to BRRR a property and am exploring different partnership structures, including variable funding structures (ex: I put down 40%, partner(s) put down 60%, we own 50/50) - is there a good calculator that models returns at the GP level, LP level, and total project level? I like everything about Bigger Pockets BRRR calculator, but it doesn't allow for different inputs with inequitable partnership contributions/ownership.

[Steven Goldman]

Hi Corey, Well if you know the return at a project level then you can apply the fractional shares and determine what the return would be for the individual partners. Make sense? 

[Ty Coutts]

Hello Corey!

I have a connection in Arkansas that currently does a lot of BRRR short term rental properties. Would be happy to connect you two if you need! Feel free to contact me directly if that would help you.

[Corey Schneider]

Quote from @Steven Goldman:

Hi Corey, Well if you know the return at a project level then you can apply the fractional shares and determine what the return would be for the individual partners. Make sense? 

Yes, this totally makes sense, but I'd like an Excel modeler that has this available to play with. I understand the end result and how to split with partnerships, but don't have an Excel model that allows me to do that, and play with preferred equity, a GP management fee, etc. James Dainard mentioned this on episode 912 https://www.biggerpockets.com/blog/real-estate-912. Does anyone have an Excel modeler that helps visualize different buy/hold, BRRR and flip partnership structures/returns?

[Jake Baker]

@Corey Schneider

We fund with a combination of Hard Money and Private Money. Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule. Our Private investors will fund the remaining 10% of the purchase price, the first portion of the rehab (to be drawn later from the HML), and the holding costs. Of course, with private lenders, you will need to give up equity or a return on the debt.

Another option - Preferred Returns. Before you split the profits 50/50. If I am the contractor I get my % of rehab costs. If I am the agent I get my commission. The investor(s) get a 5-9% preferred annualized return on their money.

[Corey Schneider]

Quote from @Jake Baker:

@Corey Schneider

We fund with a combination of Hard Money and Private Money. Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule. Our Private investors will fund the remaining 10% of the purchase price, the first portion of the rehab (to be drawn later from the HML), and the holding costs. Of course, with private lenders, you will need to give up equity or a return on the debt.

Another option - Preferred Returns. Before you split the profits 50/50. If I am the contractor I get my % of rehab costs. If I am the agent I get my commission. The investor(s) get a 5-9% preferred annualized return on their money.

 Thanks Jake - this totally makes sense. I understand the structure, I'm just looking for an Excel modeler to help me play with scenarios. Do you have one you can send?

[Kyle Joseph]

Corey  - I am a real estate investor but also help real estate investors with deal underwriting and analysis. I'm happy to help. I will shoot you a DM.

[Bogdan Goncharov]

hi Corey,

have you found the Excel calculator? Could you please share if possible?

Thanks